Fisheries credit in Africa is represented by case studies from East Africa (Tanzania), Central Africa (Rwanda) and West Africa (Benin). While the Lake Fishing Credit Project in Benin channeled funds to cooperatives through a Village Development Fund set up by the Regional Action Centre for Rural Development (CARDER) under the Benin-German Rural Development Project, credit for fishermen in the Lake Tanganyika Project is provided through a revolving loan fund operated by the Cooperative and Rural Development Bank of Tanzania under a FAO project. The introduction of appropriate fishing technologies to Lake Kivu in Rwanda was supported by a revolving loan fund operated by a FAO project without involvement of a financial institution.
The Benin project showed satisfactory loan repayment rates up to 1984, and undoubtedly raised the standard of living of borrowers, but environmental conditions resulted in the suspension of loans in 1986.
The Lake Tanganyika project, which is still ongoing, is considered very successful in terms of loan repayments and has introduced procedural innovations such as the automatic conversion of repayments into foreign currency to be used for the importation of fisheries inputs.
The FAO project on Lake Kivu in Rwanda, still ongoing, has successfully introduced a new fishery, including capture, processing and marketing. Utilization and repayment of loans for fishing craft and gear has been very good. The project is in the process of transfering its credit function to a national financial institution.
TANZANIA
This case study describes the revolving fund operated by the Cooperative and Rural Development Bank of Tanzania under the FAO project Integrated Technical Assistance and Credit for Artisanal Fishermen in Lake Tanganyika.
The objectives of this project are to provide technical assistance and loans in kind to artisanal fishermen, to increase productivity and improve catching, processing and marketing methods. It provides one of the rare examples of a successful credit project in Africa from the point of view of loan recovery rates. Another interesting feature is that loan repayments are converted automatically into foreign currency to pay for the importation of fishery inputs.
A mission carried out in September 1988 to review the constraints encountered in the project with the rapid expansion of the successful credit scheme, particularly to the poorer sections of the fishing community, drew up a list of recommendations. These included a more flexible and simpler credit delivery and recovery system, the inclusion of special credit schemes for women and the creation of a fund stabilization component. It was also recommended that loan appraisal be streamlined, the Regional Manager given more authority in loan approvals and speedier transfer of funds made.
RWANDA
The FAO Fisheries Development Project in Rwanda introduced a completely new fishery to Lake Kivu, appropriate to the exploitation, processing and distribution of a newly introduced fish species, the Isambaza. In order to facilitate the acquisition of fishing craft and gear, a credit scheme is operated by the project, which shows an almost 100 per cent loan recovery and loan utilization rate.
The credit scheme is an integral part of the overall project activities and closely linked to training, technical and logistic assistance concerning the entire production cycle from fish capture to fish processing, distribution and marketing of fishery products including promotional efforts and consumer information.
Due to its integrated and supporting character and the extremely close contact of borrowers with the project, the credit programme does not incorporate any formal procedures for loan application, appraisal, disbursement and supervision - a fact which gives it a unique character.
BENIN
The Benin case study describes the Lake Fishing Credit Project undertaken in Lake Nokoué. This project was established under the Benin-German Rural Development Project in cooperation with the Atlantic section of the Regional Action Centre for Rural Development (CARDER). A Village Development Fund, set up originally to finance agricultural and social micro-projects, was then utilized to fund fishermen's cooperatives.
From 1979 to 1986 fifty loans totalling 117 217 267 CFA francs were granted to fishermen's cooperatives. Loan repayment rates were satisfactory until 1984. At this point loans were suspended due to negative environmental conditions caused by the linking of Lake Nokoué with the sea. By 1989 only 40 per cent of the original amount had been repaid.
In its first six years, the Lake Fishing Credit Project proved successful; the cooperatives which were created, monitored and financed by the project were efficiently run both from the organizational and the financial viewpoint. Members' standard of living was considerably improved and many were able to run their own fishing parks. Unfortunately, the project's future is compromised by the ecological changes in Lake Nokoué, but perhaps the organizational structure for fisheries credit delivery and recovery established by the project can serve as an example for other areas of Benin or other countries in West Africa.
